I don't think he's talking about resolution, just if it works or not.
When I first got my PS3, I read that too so I was hesitant to buy a Blu-ray movie. I then got my first Blu-ray and saw that it worked. A HDMI cable isn't required. You are getting a downgraded picture (I wouldn't say it's degraded) but it should still be way better than any DVD. I think they put that disclaimer on there to make you think you have to buy a new TV and cables.
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